Untangling Price Shifts, Consumer Choices, and Alcohol Regulation in Russia

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Pavel Shapkin, leader of the National Union for Consumer Rights Protection (NSZPP), argues that if water prices climb to 301 rubles, Russians may shift toward more frequent purchases of low-alcohol drinks. These beverages are sometimes produced outside the formal market and can pose health risks. He is engaging in discussions with NSN on this topic.

Shapkin notes that round figures on price tags act as a psychological hurdle for shoppers. He believes breaking the 300 ruble threshold could push consumers to seek alternative alcoholic options. This could steer people toward beverages beyond the traditional staples, especially if prices feel emotionally charged by these round milestones.

The expert suggests that cocktails, cider, mead, and beer could see higher demand as prices adjust downward. He also points out that beer currently makes up about four-fifths of total alcohol consumption, underscoring its central role in the market.

He adds that many inexpensive beer drinks are produced illegally. While they are easy to find in stores, these products are not always safe, which raises broader concerns about consumer protection and public health.

The public is reminded of the push from Russian alcohol producers to raise the minimum vodka price to 301 rubles per half-liter bottle starting in 2024, driven by higher excise duties and production costs. This proposed change is framed as a way to reflect growing costs while maintaining retail pricing discipline.

Earlier reports also highlighted a downturn in vodka and cognac production, with a 5.7% drop recorded from January through September compared with the same period the previous year. This trend points to evolving consumer preferences and the impact of pricing policies on manufacturing output.

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